Health Care Stocks Soar With Release Of Baucus' Reform Bill

Max Baucus was paid handsomely (in campaign contributions) by the health care industry to deliver a health care reform bill that only the health care industry could possibly love. Well, mission accomplished! As Julie Hirschfield Davis reports for the Associated Press today, the Baucus plan "gives health insurers, drug makers and large employers reasons to heave sighs of relief, sparing them the higher costs and more burdensome rules included in other Democratic-written alternatives."

You can also measure the affection for Baucus' bill in the reaction of health care investors. Think Progress' Igor Volsky reports that, "Following Baucus' announcement, HealthNet shares increased by 3%, United Health Group Inc shares rose by 2.7%, Humana Inc. grew by 2.6%, Wellpoint stock gained 1.7% and Aetna Inc rose 1.6%."

Once again, I feel compelled to point out that while the money spent by lobbyists frequently aids and abets the degradation and diminishment of important legislation, the return on investment remains very high. When Max Baucus' Senate Finance Committee excluded a public option from their bill back in July, health insurance stocks rose dramatically.

Shares of U.S. health insurers rose broadly on Tuesday on hopes a health reform bill would not include a government-run option, which has drawn strong opposition from insurers who fear it would destroy the private marketplace.

The S&P Managed Health Care index of large U.S. health insurers closed 6.5 percent higher.

Aetna rose 12.6 percent, Coventry was up 12.7 percent and Cigna was 7.7 percent higher, all on the New York Stock Exchange. Centene rose 7.9 percent.

Teddy Partridge at Campaign Silo sized up the numbers, and bottom-lined it like this:

Health insurance executives who have poured money into the campaign coffers of Blue Dogs, Max Baucus, Chuck Grassley, Kent Conrad, Joe Lieberman and Susan Collins (as well as their political action committees) likely made all their money back in the one day rise in stock prices. The companies themselves, which hold huge amounts of their own stock, surely recouped all of their PAC investments on Tuesday alone.

Circle of life!

MORE:
Igor Volsky: Health Insurance Stocks Rally With Release Of Baucus Health Bill [ThinkProgress]

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Comments

[Chipher]

Credit Suisse is advising their 'whales' that health care stocks will go up 50% within eight months.

Whatever you think about 'public option', Wall Street and WADC is betting on a Luciferian outcome.

[rosal]

The profiteers don't even try to hide their joy, and Baucu$ didn't even tried to hide hi$ gift to hi$ donor$. Is all in the open because they know there is nothing we can do. Or can we?

[spinns17]

well if wall street crooks like it it tells me it is bad for america.end of story.

[dukesman2000]

Forget CDS's, Blue Dog Democrats are the hottest commodity, right now. Look the insurance companies, invested 3 million in Baucus and look reap billions.

[stbernardmom]

KUDOS to all of the posters. It is so nice to see an intelligent debate without name calling and showing disrespect of someone else's ideas. I'm new here so many of the articles I have seen so far have shocked me that people can't even be civil discussing different viewpoints. My respect to all.

[TremoluxMan]

That tells you everything you need to know about the Sen. Bogus bill.

[mergina]

Health care stocks soar. Well that explains part of Obama's waste of time health care blitz, AS IF THERE IS NOTHING ELSE IMPORTANT FOR A PRESIDENT TO BE DOING, like oh, say, GETTING AMERICANS BACK TO WORK. STOPPING THE STEADY FLOW OF ILLEGAL ALIENS INTO THIS COUNTRY. ENDING THIS CHENEY PROFITEERING WARS. Do all of that first, then waste your time trying to sell plans that benefit the very corporations that own Washington. Obama is like very other politician in Washington, he governs for his corporate masters and NOT the American people. Let the stocks soar! Let the health care lies blitz continue! Let the 2010 elections once again bring a new and even uglier bought and paid for face to Washington. Let the 2010 election bring us a new face of Greed, a new president of these Corporately Owned States of America.

[masso435]

I know how you feel, I really do, but the process is not over. I know it sounds so trite and hackneyed, but you have to hold faith that we'll get where we need to go. The sausage making process, we call legislation, is on display with all its warts, and we are more aware of those warts now than ever.
As painful as it is, to some degree I think Obama is playing a "give them enough rope, and they'll hang themselves" routine. Baucus hasn't failed in that respect, and it looks like even the Bankers are going to find out soon that there is a new sheriff in town.
I find it hard myself, sometimes, to muster the patience to believe that Obama is going in the right direction, but he continues to amaze me. Just hang in there and relax.

[Chipher]

Once again, 'aliens' living in the US are working and paying taxes, or were, and therefore, are US.
They live here, they put their pants on one leg at a time, they support the economy that we enjoy.

But once the Fed forces all employers to check aliens' citizenship (our health insurer just issued mandatory certification, you must prove you're legally married to your spouse and your children are legally US citizens and legally your dependents, or they will cut you from the insurance program!!) then those aliens will be forced to leave the country, and cause more crashes in housing and retail.

Without low-priced labor to take up the spread, Corporate will continue and accelerate offshoring,
which sends jobs overseas and returns precisely NOTHING to US in support of the retail economy. It also dilutes SS/MC payments, at the very LEAST, Corporate should pay SS/MC offshoring. China is eating our manufacturing alive, and India is eating our service economy.

Almost any news you read now has been written by some Indian in Mumbai, with a US "editor". That Indian's salary has zero deduction for SS/MC, and zero contribution to our retail economy.

A million points of light, winking out, while the hooligans prowl the Mexican border. Jebeezus.

[hippie4ever]

How do these "people" like Baucus face themselves in the morning? To look into the mirror and stare into the face of inhuman corruption unseen since the days of the Third Reich? To deny people basic health care...it's unconscionable. Who except these politicians could condemn thousands upon thousands of human beings to a premature death, so they can buy the 3rd, 4th, 5th, whatever mansion, whatever automobile, whatever Cayman Islands bank account. What great Americans they be...not.

[mergina]

Greed is a sickness that blinds one to the truth, and all that is or can be good in a human being, and Washington is owned and operated by greed, its corporate masters, its lobbyists. The true face that runs this country is not the front men in the halls of congress, they are simply there for our entertainment. The true face that runs this country is in board rooms, it is Wall St. and K Street, it is the face of GREED, the face that will eventually lead to the end of the human race.

[Chipher]

In all fairness, DC was like that in the 1970's, when I worked as an intern, it was like that in the 1980's when Raegan brought D0D into the Inner Sanctum, it was like that during the Cilnton Era when he signed the Free Traed Agreement MFN with Chnia for payola, it was like that in the late 1990s with Gingruch's Contrcat on Americans, GW Bvsh, my gosh oh golly gee, that was like being raped with a red hokey puck, and now Mr Smooth Talker, his Uncle Reebus hominems, while we get sold down the river, and our kids and grand kids. We fought in the trenches in the 60's and 70's, the middle class despised us, and nobody ever seemed to mind about DC among the Teabaggers until their tax bill finally came due.
Deadbeats in America -- Propertied Land of the "I Got Mine", and Home of the Wage Slave

[afgail]

Max Baucus, the very best Senator that money can buy. Montana must be so proud.

[imusintheevening]

Bottom line, proof of corruption. Investigate violations of Senate Ethics Rules.

[Okieborn]

What !!
You really can't believe the DOJ would move on this !!
He** there busy checking out Janice Jacksons wardrobe malfunction !!

[alice09]

Good old Max, you earned your keep (5 mill from the health insurance robber barons).
There is a complex Egyptian mural in the Metropolitan Museum of Art that shows what happens to a person after they die. The crucial moment is when the heart is weighed to establish if the person led a good life. Were they good hearted? That is key to where they go next.
Whenever I see Max Baucus and what many other deceitful leaders are flagrantly doing lately for money and power, and see the inevitable damage it will cause to millions of lives, I think of that mural.
They wouldn't make the cut. And rightfully so.

[LemonMeringue]

Doesn't anybody smell a rat? Baucus bill comes out, Pelosi says a public option is a done deal, O'Reilly says he favors a public option...

It is obvious that somehow the public option is going to benefit insurance companies too. Maybe they outsource the whole thing to insurance companies. Something is not making sense but I feel we are getting hoodwinked again.

[Okieborn]

Well they won't be getting a virgin !!
The American citizenry has been hoodwinked plenty of times by big Insurance and pharmaceutical companies and Max Baucus !!

[sunny64]

Max Bacus America's 21st century Benedict Arnold! He betrayed 300 million americans for 30,000 sterlings!

[Timma]

Why not say it in starker terms - Max Baucus is the 21st century Judas.

[Soulsurfer]

LOVE the provision that will fine you if you don't buy insurance!!!! Wonder who put THAT in there?

[maxfax]

Baucus, insurance companies best friend, he's done them proud.